Consumption expenditures
A. Are equal to consumer spending plus transfer payments.
B. Account for over two-thirds of total spending.
C. Are equal to disposable personal income plus personal saving.
D. Include purchases of new and used goods by consumers.
Answer: B
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The price of silver increases from $10 per ounce to $15 per ounce while the price of gold increases from $300 per ounce to $310. In this situation, the price of silver relative to the price of gold has
a. fallen. b. risen. c. remained the same. d. cannot be determined given the information provided.
The main tool that the Federal Reserve uses to conduct monetary policy is
A) discount policy. B) open market operations. C) acting as the lender of last resort. D) check clearing. E) setting reserve requirements.
Explain how it is possible for a downward-sloping demand curve to have a constant slope but still have a variation of elasticity of demand along it
What will be an ideal response?
Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?
a. improvement in the operational efficiency of government agencies b. rapid economic growth c. a reduction in the amount of lobbying d. an increase in rent-seeking activity